EVERTON are set to unveil a #65m super-deal to secure its dream new 55,000 seat arena on Kings Dock.

But it will not come in time to prevent the club from losing its status as preferred developer for the site on the city's waterfront - at least in the short term.

Everton had been struggling to find #30m as its own contribution to the #155m building costs of the arena and fears had also arisen about raising another #35m from the residential and commercial developers.

Regeneration company Liverpool Vision, which represents the public sector partners in the #300m Kings Dock project, has given the club a New Year's Eve deadline to guarantee the cash.

Now, after weeks of negotiations by club deputy chairman Bill Kenwright, a deal which will resolve both problems has been negotiated.

A bank is understood to be at the heart of the consortium which will provide the new backing for the scheme.

Mr Kenwright told the ECHO today (Friday, December 20): "A lot of work has obviously been done in the last few weeks and while there is still more to do I am hopeful that an agreement can be reached to please all parties."

The deal won the backing of the Everton board at a day-long meeting at Goodison Park last Friday, and Liverpool Vision chairman Sir Joe Dwyer has been to London for personal talks with Mr Kenwright.

A senior public sector source confirmed today: "It is solid money and the public sector partners are feeling a lot more comfortable but there is a lot of work still to be done on the fine detail."

Details of the financial package are yet to emerge, but the ECHO understands that it provides Everton's #30m and would also guarantee #35m from the residential and commercial side.

However, the club has asked for a couple of months to complete a business scrutiny of the residential and commercial element, and the public sector partners are refusing to budge on their deadline. The club will lose "preferred developer" status at the end of December.

One insider explained: "The board of Liverpool Vision must stick to their December 31 deadline but will be keen to hear the outcome of the independent scrutiny of the Everton proposals. If that is positive, then it is full steam ahead.

"There is certainly no question of entering into negotiations with anyone else for Kings Dock in the meantime."

The new deal brokered by Mr Kenwright means Everton will not have to surrender any of its 50% equity stake in the multi-purpose arena.

It spells the end for an alternative rescue package proposed by millionaire Everton director Paul Gregg, which would have involved the club surrendering its 50% of the arena to a consortium in a "reverse mortgage" deal, and gradually buying it back.